How Cameo, Facebook And Peloton Are Embracing Coronavirus Disruption
For most companies, the 2020 COVID-19 economic shutdown has been nothing short of disastrous for business. But for a handful of disruptive tech companies, the shutdown has provided an unprecedented opportunity to shine.
In DataTrek Research’s Tuesday newsletter, co-founder Jessica Rabe discussed a handful of companies that are taking advantage of the shutdown to gain major visibility for their products and services.
Cameo And Peloton Go Mainstream
Cameo was founded only about three years ago, but the company has witnessed a meteoric rise in popularity in recent months.
Cameo is a platform on which users can purchase personalized, interactive video messages from celebrities, influencers and athletes. Rabe said Cameo has thrived during the lockdown, transitioning from simply a fun, novel idea to a top-performing app.
Cameo has raised more than $65 million in funding, and Rabe even purchased a Cameo video for her own mom for Mother’s Day. It’s probably no coincidence the company turned its first monthly profit in April, Camero expects to generate more than $100 million in 2020 bookings, and the company keeps 25% of every transaction.
The privately-held Cameo may not yet be on investors’ radar, but Rabe said 2019 IPO Peloton Interactive Inc (NASDAQ:PTON) has also experienced explosive growth in popularity. With gyms closed and Americans stock at home, Peloton bikes have helped replicate the spin class experience.
In May, Peloton set a new record for concurrent streaming viewers of a single live class at more than 23,000. Peloton has also taken advantage of the lack of live sports by partnering with athletes and ESPN to broadcast spin classes with a range of pro athletes. Rabe said the partnership was a win-win for both ESPN and Peloton because it gave ESPN much-needed competitive content to air and Peloton large-scale exposure for its products.
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Facebook Embracing E-Commerce
Finally, social media platforms have thrived during the shutdown due to social distancing measures forcing many social interactions online. Platforms have struggled with a sharp drop in advertising revenue, but engagement is up, and Rabe said Facebook, Inc. (NASDAQ:FB) is doing its best to take advantage of the opportunity.
Facebook has recently made significant pushes into the e-commerce space, which Rabe said is a sign the social media giant is willing to take on Amazon.com, Inc. (NASDAQ:AMZN) and Walmart Inc (NYSE:WMT) head-on.
“The company created customizable online storefronts called Shops to make it easier for Facebook and Instagram users to find and buy products from retailers of any size straight from the app,” Rabe said.
In addition, Facebook is developing a dedicated shopping tab for Instagram.
“In sum, these are just three of many examples of how COVID sped up the influence of disruptive technology on business models that need to adapt to changing consumer behaviors post-virus,” Rabe said.
While certain tech companies were relatively well-positioned for a shutdown prior to the outbreak, some are also doing a spectacular job of adapting on the fly to make sure they stay ahead of a dynamic economy.
Adaptability and disruption have always been hallmarks of the tech industry, and the COVID-19 outbreak has created unique opportunities for tech companies that are willing to embrace the changes.
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